Sir Ian McKellen jokes that the next Middle Earth sequel will feature a new take on his character -- Gandalf the Gay.

"And you get to find out who is is favorite dwarf," he said on the Colbert Report Monday night.

McKellan appeared on the show to plug is next film, The Hobbit, where he plays Gandalf the Grey. Host Stephen Colbert talked briefly about gay characters in the media, J.R.R. Tolkien super-fans (like Colbert, whose set is an homage to The Hobbit), and his menacing X-Men character, Magneto. Watch the interview below: